Newcastle on Sunday announced the signing of Brazil midfielder Bruno Guimaraes from Lyon on a four-and-a-half-year deal for an undisclosed fee reported to be around £40 million ($54 million).

Guimaraes, 24, is head coach Eddie Howe's third signing of the transfer window, following the arrivals of England international Kieran Trippier and New Zealand international Chris Wood.

"Bruno is a hugely exciting talent and has been one of our primary targets, so I'm delighted to secure him," said Howe.

"He strengthens the group immediately ready for the challenge ahead. He has been one of the standout performers in France and is a full international for Brazil."

Reports suggested the fee for the defensive midfielder is 40 million euros (£33 million), with a further 8 million euros in add-ons.

Newcastle have also reportedly agreed a fee with Brighton for defender Dan Burn, believed to be around £13 million (15.6 million euros).

The Magpies are flexing their financial muscle under their new Saudi-led ownership in a bid to avoid relegation from the Premier League.

The club, who have been on a training trip in Saudi Arabia over the past week, have won only two league games all season and are in the relegation zone but are just one point from safety.

They face fellow strugglers Everton in their next Premier League game, on February 8.

Howe said on Friday that the club would remain active in the January transfer window.

"We're working hard to improve the squad," he said. "Our biggest aim is to give the team the best chance of staying in the league."